SL debt repayment period to be extended from 2028 to 2042, with a lowered interest rate of around 2-pct

Sri Lanka is in the final stages of negotiations with its creditors, spearheaded by Japan, to suspend debt repayments until 2028.

The repayment period will be extended from 2028 to 2042, with a lowered interest rate of approximately 2%. Despite Sri Lanka’s appeal for further debt reduction, Nikkei Asia reports that no additional cuts are anticipated.

China, being the largest creditor, is participating as an observer. However, the terms of its debt restructuring are expected to align with those agreed upon with other creditors.